In economics, according to the life-cycle hypothesis suggested by Franco Modigliani, individuals used to careful planning of their consumption and savings behavior over their life cycle. They intend to even out their consumption in the best possible manner over their entire lifetimes, doing so by accumulating when they earn and dis-saving when they are retired.
The key assumption in this theory is that all individuals choose to maintain stable lifestyles. This implies that they usually do not save up a lot in one period to spend furiously in the next period, but keep their consumption levels approximately the same in every period. Nevertheless, across the globe, individuals and governments often face the reality that people are not saving enough to meet their retirement needs and by the end of their lives are forced to take one side gigs to make ends meet.
Seeking out the opportunity to address the emerging uncertainty within a global retirement scheme, the innovative concept of Auctus platform cuts out all intermediaries by utilizing blockchain and smart contracts that additionally allows retirement savers to aggregate their entire retirement savings along with cryptocurrency investments. This holistic approach to the entirety of savings is empowered by analytics and robo-advisory that helps the retirement saver to take better decisions and ultimately reach their saving targets faster.
In an alpha version, all holdings will simply be uploaded virtually, according to the Auctus’ whitepaper. Once all retirement savings have been uploaded to the platform, the user will be able to choose between portfolio recommendations created by the community in the human advisory marketplace, or be assisted by a robo advisor that will recommend a tailored portfolio based on your goals and profile. After following the steps to define your goals, how much you can invest and the risk you are willing to take, the user can purchase a portfolio recommendation using AUC tokens.
According to Auctus token model, users are allowed to check the portfolio’s projection prior to deciding to buy it, and in case the portfolio fits nice and well it can be obtained via MetaMask app. Notably, once the user confirms the transaction, the AUC tokens corresponding to the price for the entire chosen period are not immediately transferred to the advisor; they are transferred to an escrow smart contract. After the end of that period, if it was a good recommendation the advisor can get the tokens., otherwise tokens can be redeemed by the user.
The project team promises that at a later stage, it will also be possible to trade cryptocurrencies and tokenized assets straight from the Auctus Platform, developing further features such as automated rebalancing between cryptocurrency and traditional holdings.
Auctus’ token sale starts on March 21, 2018 and will last until March 31, 2018 with the maximum hard cap of $20 million. To participate in the token sale, every prospective participant will have to register for whitelist. The token sale whitelist is already available at the project’s official website. Once registered, the participants shall be able to purchase AUC tokens using ETH during the Token Sale.